Laserfiche WebLink
11.6 Medical Retirement Subsidy Plan, <br />Based on the first payroll period in July and no later than July 31st each <br />year, the City shall contribute to a fund an amount of money equal to <br />1.75% of the bargaining unit's salary base for the purpose of providing a <br />retiree health insurance subsidy plan. Eligibility for and the specific <br />payments made to members of the bargaining unit pursuant to this plan . <br />shall be designated at the sole discretion of SEIU. The plan shall be <br />administered by the City, at no cost to the Union or its members pursuant <br />to the written directives of SBIU. The Rands contributed by the City will <br />be maintained in such a manner as to insure that the funds are invested in a <br />reasonably scoure plan that bears a reasonable rate of intorest/growth <br />given ourrent financial markets. For purposes of this MOU, investments <br />made pursuant to the then current Statemont of Investment Policy for the <br />City of Santa Ana, shall be deemed to meet the requirements of this <br />section. This program is for medical insurance premium reduetien only. <br />Upon Council approval, the City's annual contribution of 1,75% deposited <br />in the Medical Retirement Subsidy Plan shall cease. <br />2. The Union agrees to dissolve the existing Medical Retirement Subsidy <br />Plan by June 30, 2016 unless the deadline has been extended by mutual <br />agrecrncnt of SEIU and the City. SEW will advise the City as to <br />distribution of the balance of funds in account agrees to defend the City <br />against, and 'indemnify the City for, any liability and damages incurred by <br />the City as a result of the dissolution of the SEIU Medical Retirement <br />Subsidy Plan, <br />11.7 Retirement Health Savings Plan (RHS), <br />A. The City agrees to amend the current contract with ICMA -RC to allow SEIU <br />members to participate in the "Vantage Care" Retirement Health Savings Plan <br />effective January 1, 2016, or as soon as the individual RHS accounts are <br />established. <br />Upon establishment of the RHS Accounts, the City and Union agree to the <br />following elements; <br />1. T"he City will increase the base pay of each SEIU member by <br />1.25% with said amount being deposited into employees' <br />individual RHS accounts each pay period. This 1,25% increase in <br />base is in -lieu of the Annual City Contribution of 1.75% paid to <br />the Medical Retirement Subsidy fund in July each year. <br />2. Upon retirement, an individual's accrued leave balances wi1L be <br />directed into the individual's RHS account based. on the plan <br />guidelines deterained, by SEIU. <br />50 <br />2BA -54 <br />